INDONESIA AS NEW EMERGING MARKET

Wednesday, April 19, 2006

INDONESIAN ELECTRICITY PLAN TO USE CBM

Jakarta (ANTARA News) - State electricity company PT PLN is ready to use coal bed methane (CBM) gas as a replacement for fuel oil which is used by diesel-generated power plant, PLN`s Energi Primer deputy director Tonny Agus Marwoto said here Tuesday.

"We are ready to use CDM gas if is developed well," he said on the sidelines of a conference on CDM Development in Indonesia.

Tonny said based on reports tabled during the conference, CBM gas will be produced in the next three years at the fastest.

Accordingly, PLN needs a year to change its equipment to use CBM gas instead of fuel oil, he said adding that the state electricity firm will be capable of saving money if it uses CBM gas to produce power.

Tonny said CBM is found in many areas in Indonesian islands such as in Kalimantan, Sumatra, and West Java so that the country will no longer face the shortage of electricity and fertilizers in the future if PLN is capable of taking advantage to produce power using the coal bed methane.

Some domestic and foreign companies have begun interesting to study the CBM gas, Tonny said.

The CBM gas began to be exploited and mass produced by major companies in Australia and the United States in 1980s.China, which has vast coal deposit has already begun to develop CBM.A research which was jointly conducted by state oil and gas company PT Pertamina and PT Caltex Pacific Indonesia (Chevron) in 2001 found Indonesia deposited about 337 trillion cubic feet of CBM in many areas in the country -- making the country the world?s seven largest CBM depositor. (*)

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